Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

AHC Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

Free Cash Flow = Operating Cash Flow - Capital Expenditures

Using above formula to calculate Free Cash Flow for Austco Healthcare Limited (AHC), the free cash flow value is 1.79M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Austco Healthcare Limited has a positive free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

AHC Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Austco Healthcare Limited (ASX:AHC).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income2.5M637k1.19M-6.42M
Change To Netincome73k77k79k2.79M
Change To Account Receivables1.98M-636k-1.17M817k
Change To Liabilities-3.18M1.37M-1.16M1.18M
Change To Inventory1.5M-881k3.21M-1.16M
Change To Operating Activities-636k377k-397k-231k
Total Cash From Operating Activities3.3M1.42M2.03M-2.55M
Capital Expenditures-1.51M-1.34M-889k-120k
Total Cashflows From Investing Activities-1.51M-1.34M-880k572k
Net Borrowings-577k-378k-495k-889k
Other Cashflows From Financing Activities-141k-141k-141k-57k
Total Cash From Financing Activities2.78M-378k-495k2.06M
Effect Of Exchange Rate-66k-65k-66k-52k
Change In Cash4.5M-362k590k32k
Issuance Of Stock3.5M3.5M3.5M3.01M